Bank of America does not offer a dedicated high-yield savings account
Bank of America's standard savings account earns 0.01% annual percentage yield (APY) on most balances, which is far below what other banks pay. If you want a high-yield savings account (HYSA)—typically paying 4% to 5% APY—you will need to open an account at a different bank, either online or at a brick-and-mortar institution that competes on interest rates.
Bank of America does offer a tiered savings product called the Advantage Savings account, but the highest tier still pays only around 0.01% APY. The bank's focus is on checking accounts, credit cards, and lending products rather than savings rates that compete with online banks.
If you already bank with Bank of America and want to earn more on savings, you have two realistic options: keep your checking account there and open a separate HYSA elsewhere, or move your savings to a bank that prioritizes interest rates. Many people do both—maintaining a Bank of America checking account for everyday use while holding savings at an online bank.
Key Takeaways
- Bank of America's savings accounts pay 0.01% APY, which is roughly 400 times lower than the rates offered by online banks with high-yield accounts.
- You can open a high-yield savings account at another bank without closing your Bank of America checking account.
- Online banks like Marcus, Ally, and American Express Personal Savings typically offer rates between 4% and 5% APY with no monthly fees.
- If you want to keep all your accounts at one institution, you will need to switch to a bank that offers competitive savings rates.
How Bank of America's savings accounts work
Bank of America offers two savings products: the regular Savings account and the Advantage Savings account. Both earn the same interest rate regardless of your balance, and both charge a $3 monthly maintenance fee unless you meet certain conditions (such as maintaining a $300 minimum balance or setting up direct deposit).
The Advantage Savings account is designed for customers who also hold a Bank of America checking account. It waives the monthly fee if you link it to an Advantage Checking account, but the interest rate remains 0.01% APY. Over a year, $10,000 in an Advantage Savings account earns $1 in interest.
Bank of America does not tier its savings rates based on balance size. Whether you have $500 or $50,000 in the account, you earn the same rate. This is a key difference from high-yield savings accounts, where the rate applies equally to all balances but is significantly higher.
Why online banks pay more on savings
Online banks offer higher savings rates because they have lower overhead costs than traditional banks. They do not maintain physical branches, employ fewer staff, and spend less on real estate and operations. These savings are passed to customers in the form of higher interest rates on deposits.
Bank of America, by contrast, operates thousands of branches nationwide. The cost of maintaining that infrastructure is built into their business model, and they do not compete on savings rates. Instead, they rely on checking account fees, overdraft charges, and lending products to generate revenue.
The difference in rates is substantial. If you deposit $10,000 in a Bank of America savings account earning 0.01% APY, you earn $1 per year. The same $10,000 in a high-yield savings account earning 4.5% APY earns $450 per year—a difference of $449 annually on a single deposit.
Opening a high-yield savings account while keeping Bank of America
You do not have to close your Bank of America account to open a high-yield savings account elsewhere. Many people maintain a Bank of America checking account for everyday spending and bill payments while holding savings at an online bank that pays competitive rates.
To set this up, open an HYSA at your chosen bank (online applications typically take 5 to 10 minutes). Link your Bank of America checking account to the new savings account so you can transfer money between them. Most online banks allow transfers via ACH, which usually complete within one to two business days.
This approach gives you the convenience of Bank of America's branch network and ATM access for checking while earning real interest on savings. You will manage two separate logins, but the interest earnings make the extra step worthwhile for most savers.
Banks that offer high-yield savings accounts
Several banks and financial institutions offer high-yield savings accounts with rates significantly higher than Bank of America. Current rates vary by institution and change frequently, so check each bank's website for the most recent APY before opening an account.
| Bank or Institution | Typical APY Range | Monthly Fee | Account Type |
|---|---|---|---|
| Marcus by Goldman Sachs | 4.0% to 4.5% | None | Online only |
| Ally Bank | 4.0% to 4.5% | None | Online only |
| American Express Personal Savings | 4.0% to 4.5% | None | Online only |
| Capital One 360 | 4.0% to 4.5% | None | Online only |
| Discover Bank | 4.0% to 4.5% | None | Online only |
Most online banks have no monthly fees, no minimum balance requirements, and no maximum deposit limits. They are FDIC-insured up to $250,000 per depositor, the same protection Bank of America provides. The main trade-off is that you cannot walk into a branch to deposit cash or speak to a teller in person—everything is handled online or by phone.
What to consider when choosing a high-yield savings account
Interest rate is the most obvious factor, but it is not the only one. Rates change frequently, and a bank offering 4.5% today may drop to 4.0% in a few months if the Federal Reserve lowers rates. Look for a bank with a track record of keeping rates competitive rather than chasing the absolute highest rate at any given moment.
Check whether the bank offers other products you might need, such as checking accounts, money market accounts, or certificates of deposit (CDs). Some people prefer to keep all their accounts at one institution, even if the rates are not the absolute highest. Others prioritize rate and do not mind managing accounts at multiple banks.
Confirm that the bank is FDIC-insured and that your deposits are protected up to $250,000. All the banks listed above carry FDIC insurance, but it is worth verifying before you open an account. Also check the bank's customer service availability—some offer phone support 24/7, while others have limited hours.
Frequently Asked Questions
Can I transfer money from my Bank of America checking account to a high-yield savings account at another bank?
Yes. Link your Bank of America checking account to the other bank's savings account using ACH transfer. Most transfers complete within one to two business days. You can set up recurring transfers if you want to move money automatically each month.
Will opening a high-yield savings account at another bank affect my Bank of America credit score or accounts?
No. Opening a savings account does not trigger a hard credit inquiry and does not affect your credit score. Your Bank of America accounts remain unchanged. The two institutions do not share information about your accounts unless you authorize it.
What happens to my money if the online bank fails?
Your deposits are protected by FDIC insurance up to $250,000 per depositor, per bank. If the bank fails, the FDIC will return your money. This protection is the same whether you bank with Bank of America or an online bank.
Is there a penalty for closing my Bank of America savings account?
Bank of America does not charge a penalty for closing a savings account. You can close it anytime without fees. If you have a monthly maintenance fee pending, close the account before the fee posts to avoid paying it.
Can I get a higher rate at Bank of America if I keep a large balance?
No. Bank of America does not offer tiered rates based on balance size. All savings accounts earn 0.01% APY regardless of how much money you deposit. If earning more interest is important to you, you will need to move your savings to another bank.